Loans are presented net of unearned income of $2.5 million and $2.1 million at March 31, 2015 and December 31, 2014. The following table indicates the composition of the loans as of the dates presented:



(dollars in thousands)	March 31, 2015		December 31, 2014
Commercial
Commercial real estate	$	2,152,413	$	1,682,236
Commercial and industrial	1,211,053		994,138
Commercial construction	286,166		216,148
Total Commercial Loans	3,649,632		2,892,522
Consumer
Residential mortgage	521,506		489,586
Home equity	442,396		418,563
Installment and other consumer	65,754		65,567
Consumer construction	4,410		2,508
Total Consumer Loans	1,034,066		976,224
Total Portfolio Loans	4,683,698		3,868,746
Loans held for sale	6,126		2,970
Total Loans	$	4,689,824	$	3,871,716

We attempt to limit our exposure to credit risk by diversifying our loan portfolio by segment, collateral and industry and actively managing concentrations. When concentrations exist in certain segments, we mitigate this risk by monitoring the relevant economic indicators and internal risk rating trends and through stress testing of the loans in these segments. Total commercial loans represented 78 percent of total portfolio loans at March 31, 2015 and 75 percent of total portfolio loans at December 31, 2014. Within our commercial portfolio, CRE and commercial construction portfolios combined comprised $2.4 billion or 67 percent of total commercial loans and 52 percent of total portfolio loans at March 31, 2015 and 66 percent of total commercial loans and 49 percent of total portfolio loans at December 31, 2014. Of the $2.4 billion of CRE and commercial construction loans, $527.9 million were added as a result of the merger. Further segmentation of the CRE and commercial construction portfolios by industry and collateral type reveal no concentration in excess of 9.0 percent of total loans at March 31, 2015 and December 31, 2014.

Our market area includes Pennsylvania and the contiguous states of Ohio, West Virginia, New York and Maryland. The majority of our commercial and consumer loans are made to businesses and individuals in this market area resulting in a geographic concentration. We believe our knowledge and familiarity with customers and conditions locally outweighs this geographic concentration risk. The conditions of the local and regional economies are monitored closely through publicly available data as well as information supplied by our customers. Management believes underwriting guidelines, active monitoring of economic conditions and ongoing review by credit administration mitigates the concentration risk present in the loan portfolio. Our CRE and commercial construction portfolios had out of market exposure of 6.1 percent of the combined portfolio and 3.2 percent of total loans at March 31, 2015 and 8.0 percent of the combined portfolio and 3.9 percent of total loans at December 31, 2014.

Troubled debt restructurings, or TDRs, are loans where we, for economic or legal reasons related to a borrower’s financial difficulties, grant a concession to the borrower that we would not otherwise grant. We strive to identify borrowers in financial difficulty early and work with them to modify the terms before their loan reaches nonaccrual status. These modified terms generally include extensions of maturity dates at a stated interest rate lower than the current market rate for a new loan with similar risk characteristics, reductions in contractual interest rates or principal deferment. While unusual, there may be instances of principal forgiveness. These modifications are generally for longer term periods that would not be considered insignificant. Additionally, we classify loans where the debt obligation has been discharged through a Chapter 7 Bankruptcy and not reaffirmed as TDRs.

We individually evaluate all substandard commercial loans that have experienced a forbearance or change in terms agreement, as well as all substandard consumer and residential mortgage loans that entered into an agreement to modify their existing loan to determine if they should be designated as TDRs. All TDRs are considered to be impaired loans and will be reported as impaired loans for the remaining life of the loan, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is fully expected that the remaining principal and interest will be collected according to the restructured agreement. Further, all impaired loans are reported as nonaccrual loans unless the loan is a TDR that has met the requirements to be returned to accruing status. TDRs can be returned to accruing status if the ultimate collectability of all contractual amounts due, according to the restructured agreement, is not in doubt and there is a period of a minimum of six months of satisfactory payment performance by the borrower either immediately before or after the restructuring.

The following table summarizes the restructured loans as of the dates presented:



	March 31, 2015						December 31, 2014
(dollars in thousands)	Performing TDRs		Nonperforming TDRs		Total TDRs		Performing TDRs		Nonperforming TDRs		Total TDRs
Commercial real estate	$	16,722	$	5,030	$	21,752	$	16,939	$	2,180	$	19,119
Commercial and industrial	7,988		1,772		9,760		8,074		356		8,430
Commercial construction	5,724		1,973		7,697		5,736		1,869		7,605
Residential mortgage	2,507		625		3,132		2,839		459		3,298
Home equity	3,438		510		3,948		3,342		562		3,904
Installment and other consumer	44		6		50		53		10		63
Total	$	36,423	$	9,916	$	46,339	$	36,983	$	5,436	$	42,419

There were no TDRs returned to accruing status during the three months ended March 31, 2015 or three months ended March 31, 2014.

The following tables present the restructured loans for the three month periods ended March 31, 2015 and March 31, 2014:



	Three Months Ended March 31, 2015
(dollars in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment⁽¹⁾		Post-Modification Outstanding Recorded Investment⁽¹⁾		Total Difference in Recorded Investment
Commercial real estate
Principal deferral	2	$	2,851	$	2,851	$	—
Commercial and industrial
Principal deferral	6	661		661		—
Chapter 7 bankruptcy⁽²⁾	1	3		1		(2		)
Maturity date extension	1	780		765		(15		)
Commercial Construction
Principal deferral	1	104		103		(1		)
Home equity
Chapter 7 bankruptcy⁽²⁾	8	142		133		(9		)
Maturity date extension	1	71		71		—
Total by Concession Type
Principal deferral	9	3,616		3,615		(1		)
Chapter 7 bankruptcy⁽²⁾	9	145		134		(11		)
Maturity date extension	2	851		836		(15		)
Total	20	$	4,612	$	4,585	$	(27	)
⁽¹⁾ Excludes loans that were fully paid off or fully charged-off by period end. The pre-modification balance represents the balance outstanding prior to modification. The post-modification balance represents the outstanding balance at period end. ⁽²⁾ Chapter 7 bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed.
	Three Months Ended March 31, 2014
(dollars in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment⁽¹⁾		Post-Modification Outstanding Recorded Investment⁽¹⁾		Total Difference in Recorded Investment
Commercial and industrial
Chapter 7 bankruptcy⁽²⁾	1	$	287	$	286	$	(1	)
Commercial Construction
Principal deferral	1	1,019		1,019		—
Residential mortgage
Chapter 7 bankruptcy⁽²⁾	4	277		276		(1		)
Home equity
Chapter 7 bankruptcy⁽²⁾	6	225		210		(15		)
Total by Concession Type
Principal deferral	1	1,019		1,019		—
Chapter 7 bankruptcy⁽²⁾	11	789		772		(17		)
Total	12	$	1,808	$	1,791	$	(17	)
⁽¹⁾ Excludes loans that were fully paid off or fully charged-off by period end. The pre-modification balance represents the balance outstanding prior to modification. The post-modification balance represents the outstanding balance at period end. ⁽²⁾ Chapter 7 bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed.

For the three months ended March 31, 2015, we modified 2 commercial and industrial, or C&I, loans totaling $0.2 million, and 2 CRE loans totaling $0.2 million that were not considered to be TDRs. The modifications represented instances where there was an insignificant delay in payment. As of March 31, 2015 we have no commitments to lend additional funds on any TDRs.

Defaulted TDRs are defined as loans having a payment default of 90 days or more after the restructuring takes place. The following tables present a summary of TDRs which defaulted during the periods presented that had been restructured within the last 12 months prior to defaulting:



	Defaulted TDRs
	For the Three Months Ended
	March 31, 2015			March 31, 2014
(dollars in thousands)	Number of Defaults	Recorded Investment		Number of Defaults	Recorded Investment
Residential mortgage	1	$	183	1	$	72
Home equity	1	5		—	—
Total	2	$	188	1	$	72

The following table is a summary of nonperforming assets as of the dates presented:



	Nonperforming Assets
(dollars in thousands)	March 31, 2015		December 31, 2014
Nonperforming Assets
Nonaccrual loans	$	8,218	$	7,021
Nonaccrual TDRs	9,916		5,436
Total nonaccrual loans	18,134		12,457
OREO	1,294		166
Total Nonperforming Assets	$	19,428	$	12,623